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Asia ETFs

Pro-Business Tax Cuts And Fiscal Stimulus Will Not ‘Trump’ Tighter Financial Conditions

By | Asia ETFs, Bond ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Global ETFs, International ETFs, Large Cap ETFs, Popular Posts, Small Cap ETFs, US Markets and ETFs | No Comments

What is GDP per capita? It is the value of all goods and services produced in an economy divided by the number of people living in it. Why is it important? It is one of the premier ways to identify both the comfort level of a country’s citizens at a given moment in time as well as the well-being of citizens over time. At the present moment, people living in the United States have it pretty good. Not quite as…

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5 Inconvenient Stock Truths For The Bold And The Reckless

By | Asia ETFs, Bond ETFs, China ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Here are five big-league reasons to evaluate your current asset mix: 1. Credit Fundamentals Are Deteriorating. What do you remember about the financial crisis in 2008? Perhaps you think about a term like “subprime mortgage.” Or maybe you recall the way home values and stock prices collapsed. Either way, most would agree that households and businesses with too much access to credit borrowed beyond their means. Is it happening again in 2016? The Fitch Fundamentals Index (FFI) tracks changes in…

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Stocks and Bonds: Which Asset Class Balloon Will Pop First?

By | Asia ETFs, Bond ETFs, Currency ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, International ETFs, Large Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

In 2013, the S&P 500 closed at a record high at the same time that the 10-year U.S. Treasury bond yield closed at a record low. The reason? The Federal Reserve had been buying hundreds of millions of government bonds as part of its quantitative easing (QE) program. Indeed, back in 2013, Fed leaders determined that the country still required emergency-level economic stimulus. Here in 2016, the S&P 500 may close at a record high above 2130 at the same…

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Why You May Want To Sell Into The Post-Brexit Rally

By | Asia ETFs, Bond ETFs, Consumer ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Global ETFs, International ETFs, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, Telecom ETFs, US Markets and ETFs, Utilities ETFs | No Comments

For the better part of six years, between December of 2008 and December of 2014, the Federal Reserve created hundreds of billions of electronic dollar credits to pump up asset prices (e.g., stocks, bonds, real estate. etc.). Theoretically, the subsequent wealth effect would encourage businesses to invest in their growth, consumers to spend on discretionary items and the overall economy to improve dramatically. Since the Fed terminated its stimulus program (“QE3”), however, riskier assets have struggled and “risk-off” assets have thrived….

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Time In The Markets, Not ‘Timing’ The Markets? At Least Know The Facts

By | Asia ETFs, China ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, International ETFs, Large Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

What do China, Japan, India, England, Germany… heck, most of the significant economies around the globe, share in common? Bear market declines in stock prices of 20% or more. Several ETFs demonstrate the breadth of the global depreciation in equities. For example, SPDR EURO STOXX 50 (FEZ) illustrates the doggedness of the downtrend in Europe. The pattern has persisted since the summer of 2014. Meanwhile, iShares MSCI All-Country Asia ex Japan (AAXJ) highlights the struggles in the Pacific, and iShares…

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Why Low Interest Rates Do Not Imply Perpetual Increases In Stock Prices

By | Asia ETFs, Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, International ETFs, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, Utilities ETFs | No Comments

Some investors have come to believe that ultra-low interest rates alone have made traditional valuations obsolete. The irony of the error in judgment? Experts and analysts made similar claims prior to the NASDAQ collapse in 2000. (Only then, it was the dot-com “New Economy” that made old school valuations irrelevant.) The benchmark still trades below its nominal highs (and far below its inflation-adjusted highs) from 16 years ago. Without question, exceptionally low borrowing costs helped drive current stock valuations to extraordinary…

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When You Exit The Stock Market, Don’t Let The Door Hit You On Your Way Out

By | Asia ETFs, Biotechnology ETFs, Bond ETFs, China ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Financial ETFs, Global ETFs, International ETFs, Large Cap ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs, Utilities ETFs | No Comments

You cannot make this stuff up. The median stock in the S&P 500 has never been more overvalued on price-to-earnings growth (PEG) and price-to-sales (P/S). On a forward price-to-earnings (P/E) basis – where profitability expectations already reflect pie-in-the-sky speculation – the median company’s shares trade in the 96th percentile. That’s pretty darn pricey! Credit Goldman Sachs for the assessment. For that matter, give the financial conglomerate kudos for acknowledging the strong possibility that one might be wise to “sell in…

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Real Risk Taking Will Not Return Until The Fed Flip-Flops

By | Asia ETFs, Bond ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, International ETFs, Large Cap ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs, Utilities ETFs | No Comments

In a strong bull market, higher volatility stocks tend to outperform lower volatility stocks. The PowerShares S&P 500 High Beta (SPHB):iShares USA Minimum Volatility (USMV) price ratio demonstrates how the bull market in equities has been giving way since the highs in the Dow and the S&P 500 one year ago (May 2015). Similarly, in a strong bull market, growth-oriented assets tend to outperform value-oriented holdings. Instead, the iShares Core Growth (IUSG):Vanguard Value (VTV) price ratio illustrates a shift in preference…

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Should Investors Take Notice When Reward Prospects Diminish?

By | Asia ETFs, Bond ETFs, Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Large Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

The world’s central banks devise conventional and unconventional ways to depress interest rates. The impact? Consumers purchase goods and services on credit with favorable financing terms. Corporations issue low-yielding debt in order to buy back shares of their own stock. And governments issue low-yielding treasuries to continue spending far more than they generate in tax revenue. For some investors, then, the only thing that matters in the determination of whether to acquire assets like stock and real estate is ultra-low interest…

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The S&P 500’s 788,400 Minutes: Measuring One Year-And-A-Half In The Life Of An Index

By | Asia ETFs, Bond ETFs, China ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Large Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

There may be 525,600 minutes in a normal calendar year. However, there have been 788,400 minutes since the S&P 500 first hit 2050 in November of 2014; there have been 1,314,000 minutes since the NYSE Composite Index rose above the 10,000 level in November of 2013. In other words, lost in the narrative that “there is no alternative,” stocks have not gained significant ground in a very long time. Equally worthy of note, defensive stocks have been far more impressive than…

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